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AWWA ACE54491
- Estimating Future Capital Replacement Needs: An Innovative Case Study From the Central Arizona Project
- Conference Proceeding by American Water Works Association, 06/01/2001
- Publisher: AWWA
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The Central Arizona Project (CAP) needed an estimate of its future capital replacement and refurbishment funding needs in order to assess the adequacy of its existing wholesale water rates and the appropriate reserve levels to maintain. To meet this need, a system replacement planning analysis was prepared to estimate CAP's future capital system replacement and refurbishment funding levels. A detailed inventory database approach utilized existing CAP capital facility records, original cost data, expected useful life estimates, and facility condition assessment data to determine future capital replacement needs.Interim results provided CAP with annual capital replacement and refurbishment estimates that were used to assess the adequacy of existing wholesale water rates and reserve levels. The results were also used to help inform and educate CAP's senior management, Board of Directors, and customers on future capital funding needs. Includes tables.
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